How women insolvency professionals have fared in IBC: An analysis in numbers
How have women insolvency professionals (IPs) fared in the last four years of the existence of Insolvency and Bankruptcy Code (IBC)? Women have actively participated in the corporate insolvency resolution process (CIRP) in different capacity – as insolvency professionals, lawyers, consultants, etc. However, the role, of insolvency professionals is the most crucial in the CIRP process.
And it is heartening to know that many women IPs have shown that they are equal to the task, even if their number is low compared to their male counterpart. According to the quarterly newsletter published by Insolvency and Bankruptcy Board of India (IBBI), out of 3,182 IPs registered as on 30 September 2020, 291, or 9%, of them were women.
While women IPs have been part of the CIRP in different capacities – as interim resolution professionals, resolution professionals and liquidator – for simplicity sake, we are considering for our analysis only those women insolvency professionals who have helped successful resolution of the CIRP.
Role in resolution
According to IBBI, so far 277 cases have been resolved (as on 30 September 2020), of which 19 were supervised by women insolvency professionals. These (19) cases together accounted for Rs 21,000 crore of financial creditors’ claims, and resulted in recovery of close to Rs 4,800 crore, a recovery rate of 23%.
The most prolific of the women IPs, who handled resolution of these cases include Mamta Binani and Vandana Garg. They handled a total of six CIRPs (four by Mamta Binani and two by Vandana Garg), which together involved Rs 18,980 crore of financial Creditors’ claim and recovery of Rs 4,514 crore.
Vandana Garg is the only women Insolvency professional who handled one of the Big 12 NPA cases referred to by the Reserve Bank of India (RBI) for resolution through IBC.
Vandana Garg was the resolution professional in the CIRP of Jyoti Structures, where financial creditors had claims of Rs 7,365 crore. Jyoti Structures was successfully bid by a group of HNIs led by Sharad Sanghi for Rs 3,684 crore, yielding a recovery rate 50%.
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Vandana Garg’s other CIRP case which ended in a resolution was GVR Infra Projects, in which Rs 2,271 crore of financial creditors’ money was stuck. GVR Infra Projects was acquired by UV ARC for Rs 352 crore, a recovery rate of just over 15.5%.
Mamta Binani handled the CIRP of Deccan Chronicle Holdings, which owed Rs 8,180 crore to financial creditors. Deccan Chronicle was acquired by SREI Multiple Asset Investment Trust (Vision India Fund) for a sum of Rs 358 crore, a recovery rate of 4.37%.
Among Mamta Binani’s other big cases included Synergies Dooray Automotive, which owed Rs 927 crore to financial creditors. The resolution yielded only Rs 54 crore in recovery for financial creditors. This was also the first CIRP to see resolution.
Charu Desai was at the helm of resolution of Calyx Chemicals & Pharmaceuticals, which owed Rs 1,418 crore to financial creditors. The financial creditors could recover only Rs 68 crore, or 4.82%, through the resolution process.
Most of the other CIRPs ending in resolution, and where a woman RP was at the helm involved less than Rs 1,000 crore of bankers’ claims.
Women IPs at the helm of CIRPs ending in resolution
| Name of Corporate Debtor | Admitted Claims of FCs (Rs cr) | Resolution Amount for FCs (Rs cr) | % Recovery | Successful Resolution Applicant | Resolution professional |
| Deccan Chronicle Holdings Ltd | 8,180.65 | 357.5 | 4.37 | SREI Multiple Asset Investment Trust (Vision India Fund) | Mamta Binani |
| Jyoti Structures | 7,364.52 | 3684 | 50.02 | Group of HNIs led by Sharad Sanghi | Vandana Garg |
| GVR Infra Projects Limited | 2,271.08 | 352 | 15.5 | UV ARC | Vandana Garg |
| Calyx Chemicals & Pharmaceuticals Ltd | 1,418.37 | 68.3 | 4.82 | Consortium of Khilari Infrastructure Pvt. Ltd & Topnotch Chemicals | Charu Desai |
| Synergies Dooray Automotive Ltd. | 972.15 | 54.7 | 3.91 | Synergies Castings ltd | Mamta Binani |
| Palogix Infrastructure Pvt. Ltd. | 154.39 | 56.84 | 18.83 | Sanjay Kumar Mishra (JFC Finance) | Mamta Binani |
| Solidaire India Limited | 133.87 | 1.2 | 0.90 | J Karthika | |
| Rave Scans Pvt. Ltd. | 122.22 | 52.64 | 43.07 | Rahul Jain | Ritu Rastogi |
| Noble Explochem Limited | 106.12 | 57.3 | 54.00 | IPCA Lab | Prajakta Menezes |
| Aster Building Solutions Pvt Ltd | 66.72 | 56.25 | 84.31 | YAP Trading Pvt Ltd & Pollent Ecosmart Buildsys | Padmasri Appana |
| Pellet-Energy Systems Private Limited | 43.89 | 20.07 | 45.73 | Abellon Clean Energy jointly with Bharat Sharma | Reshma Mittal |
| Aristo Texcon Pvt. Ltd. | 36.32 | 8.51 | 23.43 | Jagganath Financial Advisory Pvt Ltd | Mamta Binani |
| International Book House Private Limited | 24.63 | 8.7 | 35.32 | Nitrex Chemicals India Limited | Bhavi Shreyansh Shah |
| Royal Splendour Developers Private Limited | 21.31 | 1.2 | 5.63 | Urban Tree Infrastructure | Kavita Surana |
| Shree Raghav Ispat (India) Pvt Ltd | 19.78 | 5.5 | 27.81 | Amarsons Pearls and Jewels | Kalpana G |
| V S Texmills Private Limited | 16.31 | 4.44 | 27.22 | Chamaria Fshions Pvt Ltd | Bhavi Shreyansh Shah |
| Ciscons Projects Private Limited | 10.49 | 3.85 | 36.70 | Sasi Kanth Vallipalli | Sandhya T |
| Fourth Dimension Solutions Limited | 9.4 | 3.54 | 37.66 | Linkstar Infosys and Dhaval Mistry | Pooja Bahry |
| Nandan Hotels Ltd. | No financial creditors | 0 | NA | Promoters of Nandan Hotels | Medha Kulkarni |
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